“Hawkish forecasters believe inflation has become embedded in the New Zealand economy and the central bank will have to lift the [official cash rate] further and hold it higher for longer. Dovish forecasters think the meteoric monetary policy tightening will be more than enough to quell inflation and interest rates will have to be cut as economic activity buckles.”
Both are correct. a period of inflation followed by a long deflation. Depends whether you are a lender and owner of debt looking to 'kick the can down the road' for as long as possible, or a believer in the inevitability of 'debt-deflation' which prediction you will state publicly.
Hi Mark - that's actually me that's done that, the editor of The Bulletin, not Simon. We keep commnets open here but ask that you keep it respectful and constructive, especially when talking to others who are commenting on the post. Thanks - Anna
“Hawkish forecasters believe inflation has become embedded in the New Zealand economy and the central bank will have to lift the [official cash rate] further and hold it higher for longer. Dovish forecasters think the meteoric monetary policy tightening will be more than enough to quell inflation and interest rates will have to be cut as economic activity buckles.”
Both are correct. a period of inflation followed by a long deflation. Depends whether you are a lender and owner of debt looking to 'kick the can down the road' for as long as possible, or a believer in the inevitability of 'debt-deflation' which prediction you will state publicly.
Hi Mark - that's actually me that's done that, the editor of The Bulletin, not Simon. We keep commnets open here but ask that you keep it respectful and constructive, especially when talking to others who are commenting on the post. Thanks - Anna